Search found 2691 matches

Return to advanced search

Re: Performed backdoor Roth and accountant did not file 8606

But what about the transfer of her Ameriprise Roth? What form(s) will we receive from Ameriprise, and what should we do with it/them? And I'm unclear what to do with the 5498s that we'll receive from both Vanguard and Ameriprise; my understanding is that these are sent after the regular tax filing ...
by kaneohe
Fri Dec 19, 2014 6:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Performed backdoor Roth and accountant did not file 8606
Replies: 45
Views: 2786

Re: State tax deducation & AMT

Is that right? My understanding is that you would take all 8k as income when doing your taxes under then normal tax code. When you got to do AMT the tax refund would show up on line 7 of 6251 and be subtracted from your AGI. If you are always in AMT land this doesn't change much. If your alternatin...
by kaneohe
Fri Dec 19, 2014 5:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: State tax deducation & AMT
Replies: 25
Views: 2114

Re: Charitable Contribution from IRA

Epsilon Delta wrote:In 2013 the extender allowed QCD made in early 2013 to count for tax year 2012. Did anything similar happen this time?


sounds like not http://fairmark.com/forum/read.php?2,76746 see 1st post by Alan S.
by kaneohe
Fri Dec 19, 2014 4:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Charitable Contribution from IRA
Replies: 39
Views: 1247

Re: State tax deducation & AMT

But in AMT your state tax deductions are supposedly not deducted. So what is being recalculated? You recalculate under the AMT and regular tax rules. Most commonly, a benefit occurs because decreasing the deduction for state income tax in the prior year will increase your regular tax enough to take...
by kaneohe
Fri Dec 19, 2014 4:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: State tax deducation & AMT
Replies: 25
Views: 2114

Re: Charitable Contribution from IRA

What happens if you do the QCD withdrawal in 2014 but the charities consider it a 2015 donation and provide those receipts because they were mailed in 2015? Still considered a 2014 QCD? Among other requirements and limitations of a QCD is the requirement that the donation otherwise meet the conditi...
by kaneohe
Fri Dec 19, 2014 1:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Charitable Contribution from IRA
Replies: 39
Views: 1247

Re: Charitable Contribution from IRA

What happens if you do the QCD withdrawal in 2014 but the charities consider it a 2015 donation and provide those receipts because they were mailed in 2015?
Still considered a 2014 QCD?
by kaneohe
Fri Dec 19, 2014 12:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Charitable Contribution from IRA
Replies: 39
Views: 1247

Re: Charitable Contribution from IRA

AFAIK, the one year tax extension bill passed the House and Senate and is now waiting on the President's signature. That would extend QCD for 2014 only.... And it's not retroactive so any contributions you made before the passage don't count. That's absolutely false. The extender applies to QCDs ma...
by kaneohe
Fri Dec 19, 2014 10:03 am
 
Forum: Personal Finance (Not Investing)
Topic: Charitable Contribution from IRA
Replies: 39
Views: 1247

Re: State tax deducation & AMT

I can't say I understand in detail what you folks are talking about.................only that it sounds complicated if you get a state tax refund and that I might rather underpay and try to use the more uncertain 90% of current yr taxes safe harbor rather than the more certain 100% (or 110%) of last...
by kaneohe
Fri Dec 19, 2014 8:42 am
 
Forum: Personal Finance (Not Investing)
Topic: State tax deducation & AMT
Replies: 25
Views: 2114

Re: Backdoor Roth - Specifying nondeductible TIRA?

You specify the non-deductible nature of the contribution by not deducting it on your 1040. You also specify the non-deductible nature of the contribution by filling out F8606. The custodian is in the dark.......sometimes you may be in the dark until late December as additional income comes in. Note...
by kaneohe
Thu Dec 18, 2014 9:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth - Specifying nondeductible TIRA?
Replies: 1
Views: 256

Re: Tax Loss Carryover Schedule D

The correct way to do it is as described by Epsilon Delta above. Here is a few second method that seems to agree for most of my situations...............ymmv, esp. if income is low. Sch D http://www.irs.gov/pub/irs-pdf/f1040sd.pdf Line 7 is net ST gain/loss. Line 15 is net LT gain/loss. Line 16 is n...
by kaneohe
Thu Dec 18, 2014 4:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Loss Carryover Schedule D
Replies: 8
Views: 696

Re: Help me understand taxes with non-retirement accounts

I'm looking at the cost basis page on my parent's vanguard account. Unrealized gains means money that has been made but not taxed yet? Once a percentage of Total Stock Market would be exchanged for Total Bond Market, it would become realized gains? And then count towards income that would be taxed?...
by kaneohe
Thu Dec 18, 2014 9:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand taxes with non-retirement accounts
Replies: 29
Views: 2221

Re: Help me understand taxes with non-retirement accounts

It's likely they don't have to file a federal return: The notes below indicate that only the taxable part of of SS is included in determining whether they need to file and if, as grabiner suggests, not much of the SS , if any is taxed, then it is likely that they will be under the threshold for fili...
by kaneohe
Wed Dec 17, 2014 11:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand taxes with non-retirement accounts
Replies: 29
Views: 2221

Re: Performed backdoor Roth and accountant did not file 8606

Did you have any TIRAs w/ deductible contributions at the end of last year? If you didn't and you did a "real" backdoor Roth conversion and didn't take a deduction for the non-deductible TIRA contribution, it sounds like your taxes are ok in amount but a bit sketchy in details so you might...
by kaneohe
Wed Dec 17, 2014 10:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Performed backdoor Roth and accountant did not file 8606
Replies: 45
Views: 2786

Re: Roth distribution and conversion in 2014?

Dave...........my apologies for incorrectly interpreting (or simply reading) what you said. My answer suggests that I thought you were taking distributions from the TIRA and also doing Roth conversions from it. However your OP is clear that you were taking distributions from the Roth. Not sure what ...
by kaneohe
Wed Dec 17, 2014 9:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth distribution and conversion in 2014?
Replies: 4
Views: 494

Re: Charitable Contribution from IRA

Here are some of the benefits of a QCD resulting from elimination of the IRA distribution from your AGI: 5) If you have IRA basis, basis is preserved and future IRA RMDs will have a higher non taxable % because QCDs are deemed composed of pre tax IRA dollars first An interesting little fact that I ...
by kaneohe
Wed Dec 17, 2014 7:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Charitable Contribution from IRA
Replies: 39
Views: 1247

Re: Help me understand taxes with non-retirement accounts

If it's any consolation, it's great that you got (and took) the advice to be in TSM which has minimal distributions so it is likely that the taxes will be low. More info would be needed esp. about the SS to be sure, but since they are likely to be the 15% bracket or lower, the qualified dividends wi...
by kaneohe
Wed Dec 17, 2014 7:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand taxes with non-retirement accounts
Replies: 29
Views: 2221

Re: Roth distribution and conversion in 2014?

Both the TIRA withdrawal and the Roth conversion simply add to the taxable IRA distribution line on your 1040 so I vote w/ your CPA. There may be some tweaks if you have non-deductible contributions in your TIRA but would allow you to convert more before you reached the threshold for taxability.
by kaneohe
Wed Dec 17, 2014 1:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth distribution and conversion in 2014?
Replies: 4
Views: 494

Re: Charitable Contribution from IRA

If you did both.....exclude from AGI and deduct, you'd be doubledipping.............something IRS is usually not too happy about......e.g. it's like using the same medical expenses for an HSA withdrawal and for a medical deduction.
by kaneohe
Wed Dec 17, 2014 1:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Charitable Contribution from IRA
Replies: 39
Views: 1247

Re: Short term capital loss question.

I second getting a copy of Schedule D to work through it to understand how the various parts work including carryover losses. Oh for the days it was just Schedule D. These days it's at least sched D, form 8949 and work sheets in the instructions. something I just learned recently......perhaps your ...
by kaneohe
Tue Dec 16, 2014 3:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Short term capital loss question.
Replies: 4
Views: 421

Re: Over witholding in Roth Conversion

I like the pdf version because you can cite page numbers which make it easier for someone else to find things. Otherwise referring to a pub sometimes requires a bit of hunt to find things (like here).
by kaneohe
Tue Dec 16, 2014 1:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Over witholding in Roth Conversion
Replies: 14
Views: 678

Re: Short term capital loss question.

Yes, they are netted against ST gains, then against net LT gains. If there is excess, 3K is applied against ordinary income, the rest is carried over to future yrs.
You can study Sch D to see how it works.http://www.irs.gov/pub/irs-pdf/f1040sd.pdf
by kaneohe
Tue Dec 16, 2014 9:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Short term capital loss question.
Replies: 4
Views: 421

Re: Need to make estimated payment on Cap Gains windfall?

also if your AGI > 150K last yr., you need to have withheld 110% (not 100%) of prior yr tax
by kaneohe
Tue Dec 16, 2014 9:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Need to make estimated payment on Cap Gains windfall?
Replies: 2
Views: 405

Re: Help with IRA to Roth IRA Conversion

I don't know what you are planning to do but your spreadsheet makes it look like you are going to use TIRA money to pay the conversion taxes. (Roth IRA balance plus taxes = amount converted). See this other thread https://www.bogleheads.org/forum/viewtopic.php?f=2&t=153119&newpost=2295986 wh...
by kaneohe
Tue Dec 16, 2014 1:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with IRA to Roth IRA Conversion
Replies: 12
Views: 917

Re: Over witholding in Roth Conversion

What is your age? If < 59.5 years old, won't you get penalized for the amount withdrawn from TIRA but not converted to Roth.....in your case, the amount withheld
at 10% penalty.
by kaneohe
Tue Dec 16, 2014 12:15 am
 
Forum: Personal Finance (Not Investing)
Topic: Over witholding in Roth Conversion
Replies: 14
Views: 678

Re: Roth conversion tax question

Since this thread has gotten into the devilish details, let me add my strange case--- My Mom opened a Roth IRA in 2013, and did a conversion of a traditional IRA into it. No previous Roth IRA. I inherited that Roth IRA in 2014. My personal Roth IRA was opened back in 1999, so that 5-yr period has p...
by kaneohe
Mon Dec 15, 2014 4:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 23
Views: 1257

Re: IRA withdrawal and Roth contribution?

Not sure what you would be gaining except making your retirement account smaller..................and yes, seems to me that taking 8.6K for "educational expenses" and then using it for a Roth and to pay back your parents is a bit shady. Of course, if you already have 8.6K outside the TIRA,...
by kaneohe
Mon Dec 15, 2014 2:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA withdrawal and Roth contribution?
Replies: 6
Views: 357

Re: State tax deducation & AMT

sounds right to me.......and if you pay the deficit early in January there shouldn't be much difference in any penalty. btw...........you might want to check the AMT calculation with the HR Block calculator http://www.hrblock.com/get-answers/tax-calculators.html For some reason when I was comparing ...
by kaneohe
Mon Dec 15, 2014 2:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: State tax deducation & AMT
Replies: 25
Views: 2114

Re: Roth conversion tax question

Thanks, this table is great and I've read it several times at Fairmark over the last year or so. It's always seemed to me that it was missing a heading that would make it more understandable. The heading OVER 59.5, CONVERSION 5YR PERIOD NOT MET, ROTH 5YR HOLDING PERIOD MET (with no's in all of the ...
by kaneohe
Mon Dec 15, 2014 2:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 23
Views: 1257

Re: Roth conversion tax question

I don't see a heading of OVER 59.5 FIVE YEAR CONVERVERSON PERIOD "NOT" MET. Is that because it doesn't matter? So, if for example, I'm 62 and did a conversion last year - will the earnings on that particular conversion be tax free? I know there's no penalty since I'm over 59.5. Assume I'v...
by kaneohe
Mon Dec 15, 2014 1:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 23
Views: 1257

Re: Foreign tax credit if I sell?

You might have to ask the fund company. Often they tell you the net dividend amount w/o telling you if foreign tax was paid until you get the 1099-DIV at tax time.
by kaneohe
Mon Dec 15, 2014 1:26 pm
 
Forum: Investing - Theory, News & General
Topic: Foreign tax credit if I sell?
Replies: 14
Views: 1349

Re: Roth conversion tax question

Too much reinventing the wheel here :happy See this beautiful table by kawill from the fairmark.com site which was blessed by Alan S. Re: Roth IRA Rules - Table Approach Posted by: KAWill (IP Logged) Date: October 14, 2010 11:57PM Roth IRA Distribution Table UNDER AGE 59.5 FIVE YEAR CONVERSION HOLDI...
by kaneohe
Mon Dec 15, 2014 1:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 23
Views: 1257

Re: Roth conversion tax question

This is news to me. Maybe this could be solved by having several Roth custodians. Convert to Custodian A in year 1, B in year 2, ... , E in year 5, draw from A in year 6, B in year 7, ... , E in year 10. not necessary to have multiple custodians. There are ordering rules that say first out are orig...
by kaneohe
Mon Dec 15, 2014 12:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 23
Views: 1257

Re: Roth IRA is not completely free of tax considerations?

A Roth withdrawal of gains on funds held for less than five year would be a taxable event. Or before age 59-1/2. (And the five-year rule applies only to when you opened the Roth. If you opened a Roth IRA in 2009 or earlier and are 59-1/2 now, you can withdraw all your gains tax free, even gains fro...
by kaneohe
Sun Dec 14, 2014 9:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA is not completely free of tax considerations?
Replies: 19
Views: 2467

Re: Help with seeing tax consequences, scenios for low incom

You might try looking through this http://www.irs.gov/pub/irs-pdf/p4012.pdf . The table of contents is pretty good: You can find info on EITC starting on p. I-1 which tells you that net self-employment income counts. On p.G-6/7 you will find info on the Savers Credit. Two things that may work agains...
by kaneohe
Fri Dec 12, 2014 3:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with seeing tax consequences, scenios for low income
Replies: 7
Views: 915

Re: Foreign tax credit cap?

................................ So if you do not pay US taxes on your dividends, then your foreign tax credit will be zero........... livesoft.........while this statement is correct, I believe it could be misinterpreted. For example if you are in the 15% tax bracket where the tax rate on qualifie...
by kaneohe
Thu Dec 11, 2014 11:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Foreign tax credit cap?
Replies: 7
Views: 599

Re: Foreign tax credit cap?

http://www.bogleheads.org/wiki/Vanguard_Total_International_Stock_Index_Fund_Tax_Distributions This link from an older post has some historical data . The most recent 3 yrs show a dividend yield of about 3% which for 60K would be 1.8K in dividends. The data also suggest a foreign tax rate of about ...
by kaneohe
Thu Dec 11, 2014 11:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Foreign tax credit cap?
Replies: 7
Views: 599

Re: Anyone have Bank pay incorrect RMD?

Just a thought, what divisor are you/the bank using. There are two ways to use the uniform lifetime table. The owner uses a new divisor each year from the table for an owned IRA. A beneficiary uses the table for the first year divisor and decrements it by one each year for an Inherited IRA. Might t...
by kaneohe
Mon Dec 08, 2014 12:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Anyone have Bank pay incorrect RMD?
Replies: 12
Views: 1101

Re: Anyone have Bank pay incorrect RMD?

Just a thought, what divisor are you/the bank using. There are two ways to use the uniform lifetime table. The owner uses a new divisor each year from the table for an owned IRA. A beneficiary uses the table for the first year divisor and decrements it by one each year for an Inherited IRA. Might t...
by kaneohe
Sun Dec 07, 2014 1:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone have Bank pay incorrect RMD?
Replies: 12
Views: 1101

Re: Tax Loss Harvesting and Capital Gains

Ordinary Dividends = $47K Qual. Dividends = $33K I am wondering if the Ordinary Dividends are the total dividends with 33k of that being qualified. Unless you separated them out, that is often how they are reported. That would be paying ordinary taxes on only $14k instead of $47k. Excellent point.....
by kaneohe
Fri Dec 05, 2014 9:55 am
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting and Capital Gains
Replies: 20
Views: 1182

Re: 2014 Taxcaster - Finally!

That thing is useless. I can't put in my HSA, DBP, 401(k)s etc. sometimes you have to be creative........see some posts above about workarounds....should work for HSA. For 401Ks usually you get info on "federal gross" or some such term where the pretax deductions have already been taken o...
by kaneohe
Thu Dec 04, 2014 12:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: 2014 Taxcaster - Finally!
Replies: 16
Views: 2810

Re: Capital Gains Tax

There needs to be clarification of "for our daughter under our name." That sounds like the OP just has an account that is theirs which is mentally assigned to the daughter. There is no gift until they actually make one. If "under our name" means a custodial account in the name o...
by kaneohe
Thu Dec 04, 2014 9:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Capital Gains Tax
Replies: 9
Views: 1272

Re: Roth Conversion make sense in our situation?

Assuming the only thing that changes in a few yrs is the RMDs starting.......... RMDs will be initially about 4% of 750K or 30K /yr (actually a bit less); The 25% bracket is about 76K wide so if you will be in the bottom of the 25% bracket in the low income yrs, the addition of 30K RMDs will still l...
by kaneohe
Thu Dec 04, 2014 8:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion make sense in our situation?
Replies: 8
Views: 818

Re: Tax Exemptions - W4 Withholding Allowances

You might try using this: http://www.paycheckcity.com/calculator/w4assistant.html?execution=e2s1 I have not personally used it but it looks interesting. You might also want to check by using the values it gives and seeing how much is withheld on both your and spouse income and comparing that with th...
by kaneohe
Wed Dec 03, 2014 6:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Exemptions - W4 Withholding Allowances
Replies: 7
Views: 801

Re: Oil wells

I wonder if your math is correct: 1) Earn 100 units . Tax at 53% Tax 53 units have left 47 units in pocket 2) Earn 100 units. Invest 100 units in oil w/ 85% writeoff so nothing in pocket Deduct 85 units Net Inc 15 units Tax at perhaps 25% or so Tax 4 units Now have negative 4 units in pocket versus ...
by kaneohe
Wed Dec 03, 2014 6:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Oil wells
Replies: 12
Views: 1239

Re: 2014 Taxcaster - Finally!

It doesn't seem to allow for HSA contributions. Can you do a workaround by entering it in some other deduction category? You need to be careful that any interactions happen if they need to or don't happen if they're not supposed to so choosing the category may be important. I'm pretty sure that the...
by kaneohe
Wed Dec 03, 2014 10:16 am
 
Forum: Personal Finance (Not Investing)
Topic: 2014 Taxcaster - Finally!
Replies: 16
Views: 2810

Re: 2014 Taxcaster - Finally!

It doesn't seem to allow for HSA contributions. Can you do a workaround by entering it in some other deduction category? You need to be careful that any interactions happen if they need to or don't happen if they're not supposed to so choosing the category may be important. Taxcaster appears to onl...
by kaneohe
Wed Dec 03, 2014 9:09 am
 
Forum: Personal Finance (Not Investing)
Topic: 2014 Taxcaster - Finally!
Replies: 16
Views: 2810

Re:

bmb wrote:.................................................... All the reinvestments simply reduce the cost basis.


why don't reinvestments increase the cost basis?
by kaneohe
Tue Dec 02, 2014 8:21 pm
 
Forum: Investing - Theory, News & General
Topic: muni bond funds in taxable - reinvest dividends?
Replies: 26
Views: 5458

Re: Fixing an IRA Mixup

Thanks, Epsilon Delta. I do have the tax returns. In my wife's 2011 return line 16b contains the amount of the rollover, so it was included in taxable income. All else in your questions is as expected. Would the proper amendment to be to remove the income from line 16b or include the contribution o...
by kaneohe
Tue Dec 02, 2014 12:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fixing an IRA Mixup
Replies: 10
Views: 874

Re: How much to have Vanguard withhold on RMD

fposte wrote:It's an inherited IRA, so they may not be in the distribution phase otherwise.


What does this mean? Topic title has RMD in it and inherited IRA RMDs start shortly after death of the owner .
by kaneohe
Tue Dec 02, 2014 11:52 am
 
Forum: Personal Finance (Not Investing)
Topic: How much to have Vanguard withhold on RMD
Replies: 36
Views: 2654

Re: A Lucky $5 Bill, Some Capital Gains Questions

I thought the basis of a gift was the previous owner's basis. Was this a gift from a living person or was it inherited?
by kaneohe
Tue Dec 02, 2014 11:48 am
 
Forum: Personal Finance (Not Investing)
Topic: A Lucky $5 Bill, Some Capital Gains Questions
Replies: 12
Views: 1476
Next

Return to advanced search